Quarterly report [Sections 13 or 15(d)]

SEGMENT INFORMATION

v3.25.3
SEGMENT INFORMATION
 6 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Our chief operating decision maker (“CODM”), the Chief Executive Officer, manages business activities as a single operating and reportable segment at the consolidated level. The CODM reviews and utilizes consolidated financial information, including revenue, gross profit, operating loss and net loss as reported on the condensed consolidated statements of operations, to assess performance and allocate resources to support strategic priorities. Condensed consolidated net loss is our segment’s primary measure of profit or loss. The measure of segment assets is reported on the condensed consolidated balance sheets as total consolidated assets.
Our CODM reviews the following significant segment expenses, which are each separately disclosed and presented in the condensed consolidated statements of operations: cost of revenue for product, cost of revenue for subscription services, research and development expenses, sales and marketing expenses, and general and administrative expenses. Other segment items within condensed consolidated net loss include restructuring and impairment expenses, other income (expense), net and income tax provision. Other significant noncash segment expenses include stock-based compensation, depreciation and amortization and fair value adjustments on warrant liabilities.
Disaggregation of Revenue
The following table depicts the disaggregation of revenue by geographic areas and major product offerings and geographies and is consistent with how the CODM evaluates its financial performance (in thousands):
  Three Months Ended September 30, Six Months Ended September 30,
2025 2024 2025 2024
Americas1
   Product revenue $ 20,937  $ 21,845  $ 43,689  $ 46,424 
   Service and subscription 14,988  16,680  29,347  31,389 
Total revenue 35,925  57  % 38,525  54  % 73,036  57  % 77,813  54  %
EMEA
   Product revenue 10,849  12,455  20,832  25,974 
   Service and subscription 8,423  11,299  16,905  20,701 
Total revenue 19,272  31  % 23,754  33  % 37,737  30  % 46,675  32  %
APAC
   Product revenue 3,582  4,978  8,384  9,533 
   Service and subscription 2,209  2,226  4,311  4,825 
Total revenue 5,791  9  % 7,204  10  % 12,695  10  % 14,358  10  %
Consolidated
   Product revenue 35,368  39,278  72,905  81,931 
   Service and subscription 25,620  30,205  50,563  56,915 
   Royalty2
1,727  3  % 2,363  3  % 3,534  3  % 5,265  4  %
Total revenue $ 62,715  100  % $ 71,846  100  % $ 127,002  100  % $ 144,111  100  %

1 Revenue for the Americas geographic region outside of the United States is not significant.
2 Royalty revenue is not allocatable to geographic regions.


Revenue by Solution
Three Months Ended September 30, Six Months Ended September 30,
2025 % 2024 % 2025 % 2024 %
Primary storage systems $ 10,968  17  % $ 12,204  17  % $ 23,497  18  % $ 29,798  21  %
Secondary storage systems 19,778  32  % 23,333  33  % 38,285  30  % 39,744  27  %
Device and media 7,550  12  % 7,827  11  % 17,492  14  % 17,428  12  %
Service 22,692  36  % 26,119  36  % 44,194  35  % 51,876  36  %
Royalty 1,727  3  % 2,363  3  % 3,534  3  % 5,265  4  %
Total revenue1
$ 62,715  100  % $ 71,846  100  % $ 127,002  100  % $ 144,111  100  %

1 Subscription revenue of $6.4 million and $5.0 million was allocated to primary and secondary storage systems for the three months ended September 30, 2025 and 2024, respectively. Subscription revenue of $2.9 million and $4.1 million was allocated to primary and secondary storage systems for the six months ended September 30, 2025 and 2024, respectively.

Net Loss
The following table shows reported segment revenue, segment profit or loss, and significant segment expenses were as follows: (in thousands):
Three Months Ended September 30, Six Months Ended September 30,
2025 2024 2025 2024
Total revenue
 $ 62,715  $ 71,846  $ 127,002  $ 144,111 
Total cost of revenue
 39,163  41,201  80,736  86,410 
Gross profit
 23,552  30,645  46,266  57,701 
Gross margin
 37.6  % 42.7  % 36.4  % 40.0  %
Operating expenses
     Salaries & fringe1
16,731  21,244  34,733  42,667 
     Outside services2
4,763  7,690  12,439  20,884 
     Infrastructure3
2,330  2,882  4,852  5,790 
     Operational costs4
2,060  2,440  4,392  4,796 
     Restructuring
 3,193  383  5,616  1,574 
     Other5
2,633  1,563  4,987  4,350 
          Total operating expenses
 31,710  36,202  67,019  80,061 
Loss from operations (8,158) (5,557) (20,753) (22,360)
Other income (expense), net (185) (1,334) (616) (1,375)
Interest expense (6,227) (6,131) (12,743) (9,921)
Change in fair value of warrant liabilities 1,525  3,550  1,525  5,216 
Loss on debt extinguishment (33,254) (2,308) (30,695) (3,003)
      Loss before income taxes (46,299) (11,780) (63,282) (31,443)
Income tax provision 157  370  380  605 
Net loss $ (46,456) $ (12,150) $ (63,662) $ (32,048)
1 Salaries & fringe includes spend on contractors.
2 Outside services includes contractor, recruiting and legal expenses.
3 Infrastructure includes property related expenses, including fixed and variable lease expense, telecommunications and depreciation.
4 Operational costs include dues and subscriptions, computer expenses, office supplies and other miscellaneous items.
5 Other segment items includes travel related spend, marketing expense, taxes, fees and other miscellaneous items.